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French finance group opposes 'Robin Hood' tax

Association Paris Europlace, a group representing key players in French finance, on Sunday voiced opposition to a French-only financial transaction tax proposed by President Sarkozy, saying it would hurt the economy unless applied across the EU.

AFP - A French financial association on Sunday spoke out against a French-only trading tax that may be implemented this year.

The Association Paris Europlace, which represents key players in the French financial world, said such a tax would hurt the French economy unless it was implemented across the European Union.

The move comes after President Nicolas Sarkozy on Friday said France should not wait for other European countries to get on board with what some have dubbed a "Robin Hood tax" or the "Tobin tax" that would help reduce budget deficits.

Many activists in Western countries have long campaigned for a small tax on financial transactions to raise funds they say would compensate for the damage done by reckless speculation.

But Paris Europlace said a France-only tax "would be inappropriate."

"If this tax was applied only in France, it would inevitably lead to an exodus of banks, insurance companies and management," the association said, "and would reduce ... the role of Paris in the European and global economy."

France and its major eurozone partners have supported the idea of the tax but now seem divided on how to approach the issue, with the major players in the German and Italian bloc openly advising caution.

For its part, the European Commission has called for a "concerted approach" to the issue.

Germany, France and Italy are the eurozone's three biggest economies. Britian, which is within the European Union but outside the single currency, is opposed to transaction taxes being implemented across the 27-member EU bloc.